New updated SOA advice please

carlih1

Hi,

further to my post

http://forums.moneysavingexpert.com/showthread.html?t=428413

I am trying to sort out the rest of my debts, if i pay the £1200 off this month it will leave me with actual debts of £918.00 or credit debt and about £1000 to the council for backpayments (they mucked up my housing benefit).

What i was going to ask if any of you could help with which things to pay off first so if i tell you what i am doing now maybe you could give me some better ideas.

Debts.

Littlewoods - £495.00, paying £148.00 a month.
Vertbaudet - £296.54, paying £50.00 a month
Capital One - £324.51, currently not paying anything, think i have setup a DD with them for £20 per month, not sure though.
Council - £1108.59, paying £10 a week off the backpayments.

Income

Wages £800.00
Tax credits £800.00
Maintenance £342.00
Child Benefit, about £130.00 (this goes into savings accounts for car tax etc)

If i add that up without the CB because i don't inlcude that it comes to
£1942.00 per month.

Outgoings

Rent - £250.63
Council tax - £70.00
House ins - £1.35
Gas - £30.00
Electric - £30.00
Water - £26.87
Food - £250.00
TV lic - £10.95
BT - £20.00
Sky - £35.00
Orange - £35.00
Car ins - £31.39
Petrol - £40.00
Debt payments - £198.00
Total £1047.19

I spend some money on going out, lunches for work etc maybe extra petrol, but i never seem to have any left over to pay things off.

I woul like to know how much you guys would throw at these debts each month.

Thanks

Carli x

kinkypixie

Hi Carli,

I'm not expert when it comes to deciding which debt to pay first, but I am learning fast with the help from people on here!

Obviously the ones that are accumulating the highest interest should be your first focus.

Now you could pay the council off in one go and get them off your back, I'm not to sure how arrears may effect renting again if you decide to move house. But then again, they are only getting £10 a month, which keeps them quiet, and you could quite happily keep goign with this.

Or pay the two highest interest debts from the other three, chip away at the other and that will soon be clear before you know it if you could throw a bit more at it after having cleared the other two.

Hope this helps?

KP

And as everyone always suggests, ditch Sky for a bit - get Freeview. And try and make savings on the food bill.

david_hellier

Hi,

You seem to be doing quite well. According to my figures you have £295.46 per week to spend on food and anything else. I suggest you write this amount in a spending diary (note book) on a Monday and keep a track of what you spend by deduction. If you have any over at the end of the week, use this to pay off your most expensive debt first. ie the one with the highest interest rate. There is no point saving for road tax as I've included this in the figures.

I note no overdraft or mot.

Good luck, the figures are as follows:

income weekly monthly
self 800.00
partner 0.00
ben 130.00
tc 800.00
maint 342.00




total 0.00 2072.00 divide by 4.33
£478.16

£478.16 total weekly income

spend weekly monthly
rent/mortgage 250.63
council tax 70.00
elec 30.00
gas 30.00
water 26.89
secured loans 0.00
TV licence 10.95
fines 0.00
house ins 1.35
bt 20.00
sky 35.00
orange 35.00
car ins 31.39
petrol 40.00
debts 198.00
car tax 12.50
















total 0.00 791.71 divide by 4.33
£182.70

£182.70 total weekly spend

Start= income - spend = £295.46 per week

beanielou

You actually have quite a high income & your debts arent too auful.
It would be best to pay off the debts which cost the most ie the ones with the highest APR's.